1 IHCDA HOME PROGRAM JUNE 2013

IHCDA HOME PROGRAM JUNE 2013

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web: ihcda.in.gov | phone: 317.232.7777

A p p l i c a t i o n P r o c e s s

Overview The purpose of this application is to provide subsidies in the form of grants to selected applicants for the rehabilitation and/or new construction of single-family housing or rental housing for low and moderate-income people. Through this program, IHCDA seeks to improve the quality of existing housing stock in Indiana. This program is designed to allocate HOME Investment Partnership Program (HOME) funds to be used for the rehabilitation and/or new construction of single family homes or rental housing among selected applicants having projects that meet the requirements of the program and IHCDA’s goals for the program. 1. Demonstrate they are meeting the needs of their specific community. 2. Attempt to reach low and very low-income levels of area median income. 3. Are ready to proceed with the activity upon receipt of the award. 4. Propose to revitalize existing neighborhoods, preferably through a comprehensive approach (i.e. as

part of a published and approved community revitalization plan). 5. Propose projects that promote aging in place strategies for seniors and families with seniors. 6. Propose projects that are energy-efficient and are of the highest quality attainable within a

reasonable cost structure.

7. Propose the use of state certified Minority Business Enterprise (MBE), Women Business Enterprise (WBE), Federal Disadvantaged Business Enterprise (DBE) Participation, Veteran-Owned Small Business (VOSB), and/or Service Disabled Veteran Owned Small Business (SDVOSB) contractors, employees, and products when applicants are planning and undertaking their housing activities.

Funding Round Timeline Note: This is an anticipated schedule and is subject to change or extension. Application Webinar August 2013 Application Due Date September 6, 2013 Award Announcements October 24, 2013 Award Workshop November 2013

Application Webinar An application webinar will be conducted prior to each application deadline. During the webinar, the IHCDA Real Estate Production Department staff will describe the requirements of the HOME program, threshold and scoring criteria, how to complete the required forms and how to utilize the FTP site. Local Units of Government and Not-for-Profit entities intending to apply are required to attend. Technical Assistance The applicant may, but is not required, to schedule a technical assistance meeting with its regional IHCDA Real Estate Production Analyst to discuss both the proposed project and IHCDA’s application process. Technical assistance may be required at IHCDA’s discretion if the recipient does not have experience with IHCDA awards or if past performance was poor. Applicants are urged to contact their Real Estate Production Analyst early in the planning process to obtain guidance and technical assistance.


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Application Submission The applicant must submit the following items to IHCDA’s Real Estate Department Coordinator:

Via FTP site: One completed copy of the final application forms All supporting documents required in the tabs

Via hard copy: One completed copy of the final application forms with original signatures

All required application items are due no later than 5:00 p.m. Eastern Standard time on or before the due date. Applications received after the deadline will be returned to the applicant via certified mail. Faxed applications will not be accepted. Instructions on how to utilize the FTP site will be explained during the Application Webinar. The hard copy of the final application forms should be sent to:

Indiana Housing and Community Development Authority ATTN: Real Estate Department Coordinator

RE: HOME Application 30 South Meridian Street, Suite 1000

Indianapolis, IN 46204

All applicants must retain a copy of this application package. Applicants that receive funding will be bound by the information contained herein. IHCDA will provide the applicant contact with a confirmation number within one (1) week of receipt of the application. Application Review Each application must address only one project. Applications are reviewed in a three-step process: Step One - Completeness On or before the application deadline, the applicant must provide

all required documents, signatures and attachments. Step Two - Threshold The application must meet each of the applicable threshold criteria.

After initial threshold review, IHDCA staff may contact an applicant to request clarification of information contained in the pending application. The applicant will have the opportunity to respond on or before the due date provided by IHCDA. If the applicant does not respond to the clarification letter and therefore threshold item(s) are still in question, the application will be disqualified. Applications may have no more than three outstanding clarifications after the second review or the application will be disqualified. Points will be awarded to those applications where no clarifications are required.

Step Three - Scoring Applications that pass the completeness and threshold reviews are

then scored according to IHCDA’s published scoring criteria.


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Funded applications will be announced at the published IHCDA Board Meeting date. Confirmation letters and score sheets will be uploaded to the FTP site by the close of business on the day of the Board Meeting. Applications that are not funded will be notified by IHCDA via a denial letter and score sheets being uploaded to the FTP site by the close of business on the day of the Board Meeting. Applications not funded will not be rolled over into the next funding round. Projects will be considered under a rental or homebuyer set-aside. Approximately seventy five percent (75%) of IHCDA HOME funds will be allocated for rental projects and twenty five percent (25%) will be allocated for homebuyer projects. CDBG & HOME Award Compliance Manual The Compliance Manual outlines the requirements for administering IHCDA’s HOME awards. A complete copy of the Compliance Manual is available on IHCDA’s website here: http://www.in.gov/myihcda/2342.htm Award Compliance Trainings IHCDA will offer a training to explain the various aspects of the regulatory requirements for administering the award. Topics covered will include funds management, required record keeping, and forms and reports that must be submitted to IHCDA. In addition, IHCDA staff will be available to provide one-on-one award trainings upon request. All new applicants and those who have had difficulty administering awards in the past are strongly encouraged to take advantage of these trainings.

http://www.in.gov/myihcda/2342.htm


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E l i g i b l e A p p l i c a n t s

HOME Investment Partnerships Program (HOME)i

Cities, Town, and Counties (Non-HOME Participating Jurisdiction)

Community Housing Development Organizations (CHDO)

501(c)3 and 501(c)4 Not-for-Profit Organizations and PSAs

Joint Venture Partnerships

For Profit Entities organized under the State of Indiana

Housing Rehabilitation or New Construction

X X X X Not eligible

Rental Rehabilitation or New Construction


Homebuyer Rehabilitation or New Construction


Eligible applicants include cities, towns, or counties that are located within Indiana but outside of the following participating jurisdictions. Applications from, or housing activities located within, the following participating jurisdictions are NOT eligible for HOME funds:

Anderson Gary Muncie Bloomington Hammond South Bend Consortium*** East Chicago Indianapolis* Terre Haute Evansville Lake County Fort Wayne Lafayette Consortium**

*Excluding the Marion County Cities of Beech Grove, Lawrence, Speedway, and Southport. The Town of Cumberland is excluded when the housing activity is outside of Marion County. **Lafayette Consortium is made up of the Cities of Lafayette and West Lafayette and the unincorporated areas of Tippecanoe County. Other incorporated areas are eligible to receive assistance.

***South Bend Consortium is made up of the Cities of South Bend and Mishawaka and the unincorporated areas of St. Joseph County. Other incorporated areas are eligible to receive assistance.

Ineligible Applicants IHCDA reserves the right to disqualify from funding any application that has either an applicant, subrecipient, administrator, preparer or related parties of any of the aforementioned has a history of disregarding the policies, procedures, or staff directives associated with administering any program administered by IHCDA or programs administered by any other State, Federal, or affordable housing entities, including but not limited to the Indiana Office of Community and Rural Affairs, the U.S. Department of Housing and Urban Development (HUD), the U.S. Department of Agriculture - Rural Development, or the Federal Home Loan Bank.


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Additionally, any entity currently on IHCDA’s suspension or debarment list is ineligible to submit an application. IHCDA’s Suspension and Debarment Policy can be found in the Compliance Manual Chapter 17.

Religious and Faith-Based Organizations Organizations that are religious or faith-based are eligible to participate in the HOME programs on the same basis as any other organization. Organizations that are directly funded under the HOME program may not engage in inherently religious activities, such as worship, religious instruction, or proselytization, as part of the assistance. If an organization conducts such activities, the activities must be offered separately, in time or location, from the assistance funded under this part, and participation must be voluntary for the beneficiaries of the assistance provided. A religious organization that participates in the HOME program will retain its independence from Federal, State, and local governments, and may continue to carry out its mission, including the definition, practice, and expression of its religious beliefs, provided that it does not use direct HOME funds to support any inherently religious activities, such as worship, religious instruction, or proselytization. Among other things, faith-based organizations may use space in their facilities, without removing religious art, icons, scriptures, or other religious symbols. In addition, a HOME-funded religious organization retains its authority over its internal governance, and it may retain religious terms in its organization’s name, select its board members on a religious basis, and include religious references in its organization’s mission statements and other governing documents. An organization that participates in the HOME program shall not, in providing program assistance, discriminate against a program beneficiary or prospective program beneficiary on the basis of religion or religious belief.


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E l i g i b l e A c t i v i t i e s & P r o g r a m R e q u i r e m e n t s

Eligible Activities This program is intended to have a long-term impact on the availability and quality of the affordable housing stock in Indiana. The program is intended for the rehabilitation and/or new construction of single-family housing or rental housing. Acquisition only is not an eligible activity; however acquisition in conjunction with another activity is permitted.

Rehabilitation and/or new construction of rental housing in the form of traditional apartments, or single room occupancy units (SROs)

SRO housing consists of single room dwelling units that are the primary residence of the occupant(s). If the activity consists of new construction, conversion of non-residential space, or reconstruction, then SRO units must contain both food prep and sanitary facilities). For activities involving acquisition or rehabilitation of an existing residential structure, neither kitchen nor bathroom facilities are required to be in each unit. However, if individual units do not contain bathroom facilities, the building must contain bathroom facilities that are shared by tenants. SRO housing does not include facilities for students.

Rehabilitation and/or new construction of single-family housing.

If HOME funds are used for acquisition of vacant land or demolition in conjunction with another activity, then construction must commence within twelve (12) months of the demolition or acquisition.

Manufactured homes are eligible if they meet IHCDA’s Manufactured Housing Policy or if rehabilitation will bring the unit up to these standards:

A single dwelling unit designed and built in a factory, installed as a permanent residence, which bears a seal certifying that it was built in compliance with the Federal Manufactured Housing Construction and Safety Standards law and which also complies with the following specifications:

Shall have been constructed after January 1, 1981, and must exceed nine hundred fifty (950) square feet of occupied space per I.C. 36-7-4-1106 (d);

Is attached to a permanent foundation of masonry construction and has a permanent perimeter enclosure constructed in accordance with the One and Two Family Dwelling Code;

Has wheels, axles and towing chassis removed; Has a pitched roof; Consists of two (2) or more sections which, when joined, have a minimum

dimension of 20’ X 47.5’ enclosing occupied space; and Is located on land held by the beneficiary in fee-simple title or 99-year leasehold

and is the principal residence of the beneficiary. All other manufactured or mobile homes that do not meet the aforementioned

criteria are ineligible to receive rehabilitation assistance funded by IHCDA.

Ineligible Activities Eligible housing activities do not include:

Performing owner-occupied rehabilitation;


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Permanent Supportive Housing projects (for the 2013-2014 fiscal year, IHCDA will fund Permanent Supportive Housing projects through the Low Income Housing Tax Credit program only).;

Creation of secondary housing attached to a primary unit;

Acquisition, rehabilitation, or construction of nursing homes, convalescent homes, hospitals, residential treatment facilities, correctional facilities, or student dormitories;

The provision of project-based tenant rental assistance;

Rehabilitation of mobile homes;

Acquisition, rehabilitation, or new construction located within the boundaries of a one hundred (100)-year floodplain;

Acquisition, rehabilitation or construction of any developments that will be applying for rental housing tax credits (RHTC). These developments must apply for HOME funds as part of the RHTC application (also called the Qualified Allocation Plan);

Any housing activity funded under Title VI of NAHA, prepayment of mortgages insured under the National Housing Act, public housing developments, or acquisition, rehabilitation or construction of any developments funded under HUD’s former Rental Rehabilitation Program;

Costs for supportive services, homeless prevention activities, operating expenses, or for the use of commercial facilities for transient housing;

Acquisition only projects;

Acquisition, rehabilitation or construction of transitional housing or emergency shelters that are designed to provide temporary daytime and/or overnight accommodations for homeless persons;

Payment of HOME loan servicing fees or loan origination costs;

Tenant-based rental assistance;

Payment of back taxes.

IHCDA does not fund:

Requests from individuals, political, social, or fraternal organizations;

Endowments, special events, arts, or international projects;

Scholarships requested by individuals;

Institutions that discriminate on the basis of race, color, national origin, sex, religion, familial status, disability, sexual orientation, or gender identity in policy or in practice;

Projects in furtherance of sectarian religious activities, impermissible lobbying, legislative or political activities;

Medical research or medical profit-making enterprises. HOME Program Requirements The proposed HOME project must follow these minimum requirements, and all other requirements laid forth in the Compliance Manual, to be eligible for funding. For further details on each requirement, please see IHCDA’s Compliance Manual. The link and the appropriate chapter are included.

Recipients must comply with all regulatory requirements listed in24 CFR Part 92.

Rental housing developments must assist households at or below sixty percent (60%) of the Area Median Income for the County, as published by HUD and distributed by IHCDA. Additionally, those developments with five (5) or more HOME-assisted units must set-aside at

http://www.hud.gov/offices/cpd/affordablehousing/programs/home/


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least twenty percent (20%) of the units for households at or below fifty percent (50%) of the Area Median Income.

Homebuyer activities must assist households at or below eighty percent (80%) of the Area Median Income for that County.

Income verification is valid for a period of six (6)months. If more than six (6) months pass between income verification and contract execution/lease execution/purchase agreement, then a new income verification must be completed. All income verification procedures outlined in

IHCDA Compliance Manual, Income Verification Chapter 8 must be followed.

All IHCDA-assisted units must be inspected twice during the award period. The first inspection will occur at the completion of the documented scope of work and prior to the IHCDA Inspector’s final physical inspection. The second inspection will be conducted upon completion of the construction for the award. The IHCDA Inspector will conduct the physical inspections. (IHCDA Compliance Manual, Construction Standards & Physical Inspections Chapter 14)

The match/leverage requirement for both the HOME program is twenty-five percent (25%) of the total amount of HOME funds drawn minus administration and/or CHDO operating costs. (IHCDA Compliance Manual, Policy Requirements Chapter 1)

All applicants are required to complete the environmental review record (ERR) and submit it with the application submission as an application Threshold item. The resulting IHCDA Release of Funds is required before fully executed award documents are released and before proceeding with the project. (IHCDA Compliance Manual, Environmental Review Chapter 11). For more information, contact the IHCDA Design and Construction Review Manager.

Applicants may not purchase any property to be assisted with HOME funds or sign contracts until the ERR/Release of Funds process has been completed.

Award recipients will be required to provide proof of adequate builder’s risk insurance, property insurance, and/or contractor liability insurance during construction and property insurance following construction for the assisted property throughout the affordability period of the award. Additionally, owner-occupied rehabilitation must also stipulate that adequate property insurance be maintained throughout the affordability period. (IHCDA Compliance Manual, Procurement Procedures Chapter 10)

The recipient must follow the Davis Bacon requirements found in 29 CFR Parts 1, 3 and 5 to ensure workers receive no less than the prevailing wages being paid for similar work for the following type of projects:

Rehabilitation or new construction of a residential property containing twelve (12) or more HOME-assisted units; and

Affordable housing containing twelve (12) or more units assisted with HOME funding regardless of whether HOME funding is used for construction or non-construction activities.

Such properties may be one (1) building or multiple buildings owned and operated as a single development.

Public Housing Authorities (PHA’s) using PHA funds in conjunction with IHCDA funds are subject to Davis Bacon requirements.

The recipient must follow competitive procurement procedures when procuring all materials, supplies, equipment, and construction or professional services related to the HOME award. (IHCDA Compliance Manual, Procurement Procedures Chapter 10)

Applicants that are proposing to develop rental housing must register vacancies for assisted housing in the IndianaHousingNow.org affordable housing database.

http://www.in.gov/ihcda/files/SIP_Award_Compliance_Manual-_2nd_Edition.pdf



http://www.in.gov/myihcda/2401.htm#FED




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Each recipient of a HOME award is subject to the HUD requirements of addressing lead-based paint hazards pursuant to 24 CFR Part 35. If a risk assessment is required, then all lead-based paint issues must be addressed. (IHCDA Compliance Manual, Lead Based Paint Chapter 2)

Each recipient of a HOME award is subject to the requirements of the Uniform Relocation Act. See the IHCDA’s Compliance Manual Chapter 4 on URA for guidance on the regulatory requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), as amended, the Federal regulations at 49 CFR Part 24, and the requirements of Section 104(d) of Title I of the Housing and Community Development Act of 1974, as amended.

Housing must meet the accessibility requirements of 24 CFR Part 8 which implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and covers multifamily dwellings, as defined in 24 CFR Part 100.201. It must also meet the design and construction requirements of 24 CFR 100.205 and which implement the Federal Fair Housing Act Amendments of 1988 (42 U.S.C. 3601-3619). See the IHCDA Compliance Manual Chapter 3 for guidance on the regulatory requirements of Section 504 Accessibility Standards.

Units must, at a minimum, meet the stricter of the local rehabilitation standards or the Indiana State Building Code.

Recipients receiving $200,000 or more in construction funding from all CPD programs (i.e. CDBG, HOME, NSP, HOPWA, ESG, etc.) in a program year must comply with the Section 3 requirements. Section 3 provides preference to low- and very-low-income residents of the local community (regardless of race or gender) and the businesses that substantially employ these persons, for new employment, training, and contracting opportunities resulting from HUD-funded projects. (IHCDA Compliance Manual, Section 3 Chapter 7)

Recipients of HOME funds must meet additional energy efficiency standards for new construction as described in 24 CFR 92.251. Namely, newly constructed housing must meet the current edition of the Model Energy Code published by the Council of American Building Officials.

Rental housing and homebuyer developments with five (5) or more HOME-assisted units must adopt IHCDA’s Affirmative Marketing Procedures. See the IHCDA Compliance Manual Chapter 5 for guidance on Affirmative Marketing Procedures.

The recipient of HOME funds must ensure that every HOME-assisted homebuyer receives housing counseling before purchasing a home. The counseling can be provided by the recipient, an organization under contract with the recipient, or a qualified third party independent recipient (e.g., a HUD-approved housing counseling agency). The counseling should be comprehensive by including post-purchasing counseling, if feasible.

Persons who, as a result of national origin, do not speak English as their primary language and who have limited ability to speak, read, write, or understand English (“limited English proficient persons” or “LEP”) may be entitled to language assistance under Title VI in order to receive a particular service, benefit, or encounter. In accordance with Title VI of the Civil Rights Act of 1964 (Title VI) and its implementing regulations, the recipient must agree to take reasonable steps to ensure meaningful access to activities funded by federal funds by LEP persons. Any of the following actions could constitute “reasonable steps”, depending on the circumstances: acquiring translators to translate vital documents, advertisements, or notices, acquiring interpreters for face to face interviews with LEP persons, placing advertisements and notices in newspapers that serve LEP persons, partnering with other organizations that serve LEP populations to provide interpretation, translation, or dissemination of information regarding the project, hiring bilingual employees or volunteers for outreach and intake activities, contracting with a telephone line interpreter service, etc.



http://www.fhwa.dot.gov/realestate/49cfr.htm

http://www.hud.gov/offices/cpd/communitydevelopment/rulesandregs/memoranda/makepub92.cfm


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Recipient must ensure that each owner of a HOME-assisted rental development enters tenant events into IHCDA’s Indiana Housing Online Management System at https://ihcdaonline.com/ within thirty (30) days of the tenant’s event date. Tenant events include move-ins, move-outs, recertification, unit transfers, and rent and income changes. In addition, Annual Owner Certification Rental Reports will be required to be submitted electronically using the Indiana Housing Online Management System throughout the affordability period in the Annual Rental Report. See IHCDA’s Compliance Manual for further guidance.

Any HOME-assisted homeownership unit that has not been sold by the recipient to an eligible homebuyer within six (6) months of completion must be converted to a HOME-assisted rental unit.

Affordability Requirements HOME subsidized activities must be secured throughout the affordability period by a recorded lien and restrictive covenant agreement created by IHCDA. The affordability period begins after project completion. During the affordability period the home must remain the owner’s principal place of residency; and the homeowner is required to maintain adequate homeowner insurance on the property. (IHCDA Compliance Manual, Lien and Restrictive Covenants & Affordability Requirements Chapter 15).

The following affordability periods apply to all HOME rental housing and homebuyer projects:

Amount of HOME subsidy per unit: Affordability Period

Under $15,000 5 years

$15,000 - $40,000 10 years

Over $40,000 - or any rehabilitation/refinance combination activity

15 years

New construction or acquisition of newly constructed transitional, permanent supportive, or rental housing

20 years

All HOME-assisted rental units can use resale restrictions; recapture provisions, or a combination of both to preserve affordability.

Resale restrictions shall be implemented for every homebuyer property constructed, redeveloped, or rehabilitated, in whole or in part, with HOME Funds in the form of a development subsidy. A development subsidy consists of the difference between the cost of producing the unit and the fair market value of the property. If HOME Funds are provided to the homebuyer as a grant, the property will be subject to a resale restriction.

If the homeowner sells the property to another a low-income family that will use the property as its principal residence throughout the remainder of the affordability period, the homeowner will not be required to repay the funds. The term “low income family” shall mean a family whose gross annual income does not exceed eighty percent (80%) of the median family income for the geographic area published annually by HUD. The purchasing family should pay no more than twenty-nine percent (29%) of its gross family income towards the principal, interest, taxes, and insurance for the property on a monthly basis. The homeowner selling the property will be allowed to receive a fair return on investment, which will include the homeowner’s investment and any capital improvements made to the property. The award recipient must execute a lien



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and restrictive covenant prepared by IHCDA. The award recipient is ultimately responsible for repaying IHCDA any HOME funds invested into any unit that does not meet the affordability requirements throughout the Affordability Period. The Affordability Period is based upon the total amount of HOME funds invested into the unit. (IHCDA Compliance Manual, Lien and Restrictive Covenants & Affordability Requirements Chapter 15)

Homebuyer Recapture Guidelines Recapture provisions shall be implemented for any property purchased, in whole or in part, by a homebuyer that receives a direct subsidy (“homebuyer subsidy”) in an amount greater than or equal to One Thousand and 00/100 Dollars ($1,000) in HOME Funds. A homebuyer subsidy consists of any financial assistance that reduces the purchase price from fair market value to an affordable price, or otherwise directly subsidizes the purchase (e.g., down-payment or closing cost assistance, subordinate financing). If a homebuyer subsidy is provided to the homebuyer as a loan, the HOME Funds will be subject to a recapture provision. If the homebuyer no longer utilizes the property as its principal residence during the affordability period defined below, the amount to be recaptured is the shared net proceeds of a prorated amount of the homebuyer subsidy. The proration shall be based on the length of time the homebuyer has occupied the property as its principal residence in relation to the affordability period. Any net proceeds that exist will be shared between IHCDA and the homebuyer. If there are not any proceeds, there is no amount to recapture. If there is both development subsidy and homebuyer subsidy or just homebuyer subsidy, a recapture provision must be implemented. In cases where a homebuyer subsidy was not provided and there is only a development subsidy, resale restrictions must be executed on the property.


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C H D O

IHCDA CHDO Set-Aside IHCDA must allocate 15% of its HOME funds for CHDO projects. CHDO Eligible Activities

Permanent rental and homebuyer housing are considered CHDO-eligible activities for purposes of the CHDO set-aside as long as the activity takes place within the CHDO’s state-certified service area and the CHDO must own, develop, or sponsor the activity.

The CHDO “owns” the activity when the CHDO is the owner in fee simple absolute of multifamily or single family housing that will be rented to low-income families.

The CHDO “develops” the activity when the CHDO is the owner in fee simple absolute and developer of:

New single-family housing that is or will be constructed; or Existing single-family substandard housing that is or will be acquired and

rehabilitated for sale to low-income families

The CHDO “sponsors” the activity when rental housing is owned in fee simple absolute by the following:

A subsidiary of the CHDO (which can include a for-profit or non-profit organization wholly owned by the CHDO, or

A limited partnership of which the CHDO or its subsidiary is the sole general partner, or

A limited liability company which the CHDO or its subsidiary is the sole managing member.

CHDO Program Requirements CHDOs must adhere to all HOME requirements listed in this 2013 HOME Application Package and the additional CHDO specific program requirements:

Treatment of Program Income by a CHDO CHDOs receiving payment back during the affordability period may retain these funds. The funds must be utilized for housing activities that benefit low-income families as provided in 24 CFR 92.300(a)(2). However, if at any time during the affordability period, the CHDO becomes decertified or no longer has a mission of providing affordable housing then all CHDO proceeds must immediately be remitted to IHCDA. Please contact your Compliance Monitor for further assistance in this area.

An application for a CHDO eligible undertaking must demonstrate the following: o Low- and moderate-income persons have had the opportunity to advise the CHDO in its

decision regarding the design, site, development, and management of the affordable housing undertaking.

o Certify that the organization continues to meet the definition of a CHDO by being a certified CHDO by IHCDA.

o Complete the CHDO related sections in the 2013 HOME Application Forms.

Homebuyer provision for CHDO-eligible activities, the HOME funds may be provided as a homebuyer deferred payment or forgivable loan and must carry a zero (0%) interest rate and


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the term must not exceed the affordability period. The Single Family proforma that is submitted to IHCDA at set-up must include:

o The affordable payment (Principal, Interest, Taxes, Insurance, and Utilities) must have a front-end ratio of twenty-nine percent (29%) of gross income.

o Applicants should not allow a mortgage payment that exceeds the back-end affordable payment ratio calculated at forty-one percent (41%) of gross monthly income.

o If the activity is for new construction, at least $50.00 per month must be budgeted for property taxes, unless documentation is provided that indicates that taxes will be lower than this amount.

o Applicants must include a utility allowance between $125.00 and $200.00, unless documentation is provided that indicates that utilities will be lower than this amount.

o Donations toward a home must be counted at one hundred percent (100%) of the value; however, in the financial analysis seventy-five percent (75%) of this value must be counted toward either development and/or homebuyer subsidy. But if including a developer fee this is not eligible and one hundred percent (100%) of the value must be counted.

CHDO Operating Supplement CHDOs may apply for supplemental funds in the 2013 HOME Application Forms. The CHDO may apply for up to $50,000 in supplemental funding tied to a specific CHDO HOME eligible project. CHDO Predevelopment and Seed Money Loans CHDOs are eligible for project specific predevelopment or seed money loans. The CHDO must apply for the predevelopment or seed money through a separate application process. Please contact your Real Estate Production Analyst for more details.


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S u b s i d y L i m i t a t i o n s & E l i g i b l e A c t i v i t y C o s t s

Subsidy & Budget Limitations The maximum request amount per application is $500,000. HOME funds used for acquisition, rehabilitation, new construction, program delivery, relocation, rent-up reserve, and developer’s fee combined cannot exceed:

AMI Level

Subsidy Limit

0 Bedroom or Efficiency Units

1 Bedroom Units

2 Bedroom Units

3 or more Bedroom Units

30% $40,000 $47,250 $50,000 $57,750

40% $38,000 $45,000 $47,500 $55,000

50% $36,100 $42,750 $45,150 $52,250

60% $34,300 $40,600 $42,850 $49,650

Minimum amount of HOME funds to be used for rehabilitation or new construction is $1,000 per unit.

HOME funds cannot be used for reserve accounts for replacement or operating costs, but may be used as a Rent-Up Reserve.

All subsidies must be secured throughout the affordability period by a written, legally binding, recorded restrictive covenant.

HOME funds budgeted for administration or CHDO operating costs cannot exceed five percent (5%) of the HOME award. HOME funds budgeted for developer’s fee cannot exceed fifteen percent (15%) of the HOME award. HOME funds budgeted for administration or CHDO operating, program delivery, environmental review and developer’s fee together cannot exceed twenty percent (20%) of the HOME award. Form of Assistance HOME funds will be awarded to the recipient in the form of a grant. Award documents must be executed in order to access funds and may include, but are not limited to: award agreement, resolution, and a lien and restrictive covenant agreement.

The applicant may then provide the HOME award as a forgivable, amortized, or deferred loan to as many other entities as they choose, known as subgrantees (beneficiaries if a homebuyer award). However, subgrantees must be identified in the application and approved by IHCDA.

A title company is required to be used for all loans that occur between the IHCDA recipient and the beneficiary or subgrantee of the program. For example, an IHCDA recipient providing funds for a homebuyer activity must use a title company when the loan is made to the homeowner. Another example is when an IHCDA recipient is assisting a property that that it does not own. When the loan is made from the IHCDA recipient to the subgrantee, a title company must be used.


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The IHCDA recipient must execute a promissory note, mortgage, lien and restrictive covenant agreement, security agreement, UCC Financing Statement(s), and other documents as directed by IHCDA in order to secure IHCDA’s investment in the assisted property. The recipient is required to deliver these documents to the county recorder’s office for recording. These documents will be reviewed during monitoring visits. Eligible Activity Costs The bolded items listed below are included in the application budget. If you have a question about which line item an expense goes under, contact your IHCDA Real Estate Production Analyst. RETAINAGE POLICY - IHCDA will hold the final $5,000.00 of an award until the completion reports, leverage documentation, and closeout documentation is received and approved. Additionally, IHCDA will hold the final $5,000.00 of an award until the final monitoring and final inspection have been completed and all findings and/or concerns associated with them have been resolved. ACQUISITION – Limited to the purchase price and related costs associated with the acquisition of real property. Recipients must use a title company when purchasing or selling assisted properties. DOWN PAYMENT ASSISTANCE – Down payment assistance may include closing costs, principal reduction, or interest rate buy-downs provided to program participants, or any assistance that reduces the purchase price from the fair market value to an affordable price. NEW CONSTRUCTION – Eligible costs include:

Hard costs associated with new construction activities

Utility connections including off-site connections from the property line to the adjacent street

Site work related to driveways, sidewalks, landscaping, etc.

Related infrastructure costs - improvements to the development site that are in keeping with improvements of surrounding, standard developments. Site improvements may include on-site roads and water and sewer lines necessary to the development

For multifamily rental housing, costs to construct an on-site management office, the apartment of a resident manager, or laundry or community facilities that are located within the same building as the housing and are for the use of the tenants and their guests

Stoves, refrigerators, built-in dishwashers, garbage disposals, and permanently installed individual unit air conditioners

REHABILITATION – Eligible costs include:

Hard costs associated with rehabilitation activities

Lead-based paint interim controls and abatement costs.

Mold remediation.

Utility connections and related infrastructure costs - off-site connections from the property line to the adjacent street are eligible when it is deemed a threat to health and safety. Improvements to infrastructure when there will be no rehabilitation work done on the actual house to be served.

For multifamily rental housing, costs to rehabilitate an on-site management office, the apartment of a resident manager, or laundry or community facilities that are located within the same building as the housing and are for the use of the tenants and their guests

Stoves, refrigerators, built-in dishwashers, garbage disposals, and permanently installed individual unit air conditioners


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Site work related to driveways, sidewalks, landscaping, etc. DEMOLITION – Costs associated with the demolition and clearance of existing structures. PROGRAM DELIVERY - Program delivery costs are those costs that can be directly tracked by address. They include soft costs and client-related costs that are reasonable and necessary for the implementation and completion of the proposed activity. This line item along with administration and environmental review cannot exceed twenty percent (20%) of the HOME request. Recipients are allowed to draw down this line item as costs are incurred. Additionally, program delivery may be used to payoff a HOME CHDO Predevelopment or CHDO Seed Money loan but may not exceed the twenty percent (20%) line item cap. Eligible costs include:

Engineering/Architectural Plans

Credit reports

Financing costs

Client in-take / Income verification

Plans, specifications, work write-ups

Credit reports

Title Searches

Impact fees

Inspections

Cost estimates

Building permits

Recording fees

Demolition permits

Travel to and from the site

Lead hazard testing

Private lender origination fees

Appraisals

Consultant fees

Realtor fees

Utilities of assisted units

Other professional services

Builders risk insurance

Phase I Environmental Assessments

Closing costs paid on behalf of homebuyer

Legal and accounting fees

RENT-UP RESERVE – HOME funds may be used to fund a rent-up reserve for new construction and rehabilitation rental housing developments. This reserve can be used to meet shortfalls in development income during the rent-up period and may only be drawn down after all construction is completed at the development. The following terms apply:

The term of the rent-up reserve account may not exceed six (6) months after all construction is completed, after which time any unused reserves left in the account will be de-obligated by IHCDA.

These funds can be used only for development operating expenses, scheduled payments to replacement reserves, and/or debt service payments.

The recipient must receive IHCDA’s approval prior to accessing its rent-up reserve funding.

The amount of HOME funds that can be utilized for a rent-up reserve is limited to three (3) months development operating expenses plus three (3) months of development debt service.

RELOCATION - This includes relocation payments and other relocation assistance for permanently and/or temporarily relocated individuals, families, businesses, nonprofit organizations, and farm operations where assistance is required and appropriate. Relocation payments include replacement housing payments, payments for moving expenses, and payments for reasonable out-of-pocket expenses for temporary relocation purposes. For additional information on relocation and displacement, please refer to the information provided in the IHCDA’s Compliance Manual Chapter 4.

http://www.in.gov/ihcda/files/SIP_Award_Implementation_Manual(3).pdf


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LEAD HAZARD TESTING – Costs associated with lead hazard testing includes Risk Assessment, Clearance Test, etc. The limits for this line item are $1000.00 per unit. HOMEOWNERSHIP COUNSELING – Costs associated with formal training provided to prospective homebuyers. This item is limited to $1,000.00 per homebuyer. Eligible costs include:

Course material development/costs

Related travel

Underwriting

Professional services

Intake

Training location

Credit reports

Postage

Income verification

Loan processing

Program management

Marketing and advertising DEVELOPER’S FEE – Developer’s fees are only available with HOME funded activities and cannot exceed fifteen percent (15%) of the HOME award. Additionally, the total of Developer’s Fee, Administration or CHDO operating, program delivery and environmental review cannot exceed twenty percent (20%) of the HOME request. ADMINISTRATION - The administration line item includes those costs directly related to administering the IHCDA award and complying with the regulations associated with these funds. This line item cannot exceed five percent (5%) of the HOME request and generally is between $5,000 and $10,000. This line item along with Developer’s Fee, program delivery, and environmental review cannot exceed twenty percent (20%) of the HOME request. Recipients are allowed to draw down this line item as costs are incurred. Costs associated with preparing an application for funding through IHCDA are not eligible for reimbursement through a HOME award. This line item does not incur a match liability for HOME funds. Eligible costs include:

Affirmative marketing

Fair housing education

Postage

Office materials and supplies

Photocopying

Office rent and utilities

Travel related to the housing activity

Communication costs

Lead based paint training

Staff time or professional services related to reporting, compliance, monitoring, or financial management

Training related to the housing activity

CHDO OPERATING COSTS – CHDO operating costs are those costs directly related to administering an IHCDA HOME CHDO award and complying with the regulations associated with these funds. HOME funds expended on CHDO operating costs incur no match liability. This line item cannot exceed five percent (5%) of a HOME award and generally is between $5,000.00 and $10,000.00. This line item along with developer’s fee, program delivery, and environmental review cannot exceed twenty percent (20%) of the HOME request. Recipients are allowed to draw down this line item as costs are incurred. Costs associated with preparing an application for funding through IHCDA are not eligible for reimbursement through a HOME award.


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Eligible costs include:

Affirmative marketing

Fair housing education

Postage

Office materials and supplies

Photocopying

Office rent and utilities

Travel related to the housing activity

Communication costs

Lead based paint training

Staff time or professional services related to reporting, compliance, monitoring, or financial management

Training related to the housing activity

ENVIRONMENTAL REVIEW – This line item includes expenses associated with the Environmental Review Release of Funds process. This does not refer to a Phase I Environmental Assessment. Those expenses should be included in the Program Delivery line item. This line item along with developer’s fee, program delivery and administration or CHDO operating cannot exceed twenty percent (20%) of the HOME request. Eligible costs for this line item are generally between $2,000 and $5,000 and include professional services, publication costs, photocopying, and postage. For further information regarding this activity, please read the Environmental Review Guide found in Chapter 11 of the IHCDA Compliance Manual or contact Adrienne Schmetzer, IHCDA Design and Construction Review Manager. Ineligible Activity Costs Commercial development costs - All costs associated with the construction or rehabilitation of space

within a development that will be used for non-residential purposes such as offices or other commercial uses. This does not include the common area used by tenants of rental property or the leasing office of the apartment manager. HOME awards cannot be used to underwrite any portion of commercial development costs. The expenses incurred and income to be generated from commercial space must be reported in a separate “Annual Expense Information” sheet and fifteen (15)-year proforma.

Costs associated with preparing an application for funding through IHCDA. Purchase or installation of luxury items, such as swimming pools or hot tubs. Purchase or installation of equipment, furnishings, tools, or other personal property that is not an

integral structural feature, such as window air conditioner units or washers and dryers. Cost of supportive services. General operating expenses or operating subsidies. Providing tenant based rental assistance. Mortgage default/delinquency correction or avoidance. Loan guarantees. Annual contributions for operation of public housing. Costs associated with any financial audit of the recipient. Program Income Income generated by CHDOs acting as owners, sponsors or developers of HOME units may be retained by the CHDO’s but it must be used for housing activities that benefit low-income families as provided in 24 CFR 92.300(a)(2). However, funds recaptured because housing no longer meets affordability requirements is not considered CHDO proceeds and must be returned to IHCDA. Income generated by not for profits or for-profits, acting as developers of HOME units, may be retained by the developer and is not subject to HOME Program requirements.


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Additionally, all legal documents, such as mortgages, security agreements, UCC financing statements, and liens executed by the IHCDA recipient and the beneficiary or subrecipient, receiving assistance, must be recorded at the county recorder’s office. These documents must be submitted to IHCDA at closeout along with the IHCDA recipient’s completion reports and will be reviewed during monitoring visits conducted by IHCDA staff. The State of Indiana, Department of Financial Institutions, has determined that any community development corporation (as defined in IC 4-4-28-2) acting as a subrecipient of funds received from; the Indiana Housing and Community Development Authority is exempt from the requirements of the Consumer Credit Code set forth in (IC 24-4.5), including its loan licensing requirements. Subsequently, if you are a not for profit that does not meet these requirements, you could be subject to the loan licensing requirements as listed above. Additionally, if your organization makes more than twenty (25) consumer loans in a year, then the loan-licensing requirements referenced above could become applicable.


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R e n t a l H o u s i n g R e q u i r e m e n t s

HOME projects can propose the following rental projects: Permanent Rental Rehabilitation or New Construction: Provides affordable housing that will be rented to income-eligible tenants. Eligible activities include rehabilitation and new construction. Acquisition is allowed only in conjunction with rehabilitation or new construction activity. Permanent rental housing units may not be used for temporary or emergency housing at any time. Eligible rental activities also include the acquisition or rehabilitation of assisted-living facilities as long as they meet IHCDA’s definition. IHCDA defines an assisted living facility as living arrangements in which some optional services are available to residents (meals, laundry, medication reminders), but residents still live independently within the assisted-living complex. Residents of such facilities pay a regular monthly rent, and then pay additional fees for the services that they desire. Rent Restrictions HOME-assisted rental units will be rent-restricted throughout the affordability period to ensure that the units are affordable to low- and moderate-income households. Please refer to the most recent HOME rent limits, which may be found on IHCDA’s website under RED Notices. The following restrictions apply:

Published rent limits include the cost of any tenant-paid utilities. You must subtract from the published rent limit an IHCDA or HUD approved utility allowance for all utilities that the tenant will be responsible for. For example, if the rent limit in a given county is $300.00. The utility allowance for gas heat is $28.00, for other electric is $20.00, and for water is $13.00. For a unit where the tenant will pay for gas heat, other electric, and water, the maximum allowable rent would be $239.00 ($300.00 - $28.00 - $20.00 - $13.00 = $239.00).

All units must be leased for initial occupancy within 18 months.

If the SRO-unit has both food preparation and sanitary facilities, then use the HOME zero-bedroom (efficiency) unit rent or 30% of the household’s adjusted income, whichever is most restrictive.

Gross rent must be at or below the published rent limit. Gross rent = tenant-paid rent + tenant-based rental assistance + utility allowance + non-optional charges.

If the applicant proposes to receive all or a portion of the rent payment via a tenant-based voucher (rental subsidy), the gross rent (including the rental assistance amount) cannot exceed the published rent limits for the applicable income level. For example, a tenant residing in a unit set-aside for households at or below forty percent (40%) of the area median income has a voucher that pays $100.00 of his/her rent, and the published utility allowance for tenant paid utilities for the unit is $50.00. If the published forty percent (40%) Rent Limit is $300.00, the tenant paid portion of rent cannot exceed $150.00 ($300.00 Rent Limit - $100.00 Section 8 Voucher - $50.00 Utility Allowance = $150.00 Maximum Tenant Paid Portion).

If the development receives a federal or state project-based rent subsidy and the unit is designated as 50% or below and the household is at or below fifty percent (50%) AMI and the household pays no more than thirty percent (30%) of his/her adjusted income for rent, then the maximum rent may be the rent allowable under the project-based rental subsidy program as set forth in 24 CFR 92.252(b)(2).

If the development charges non-optional fees for food or the costs of supportive services, then these costs must be included in the gross rent calculation


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All tenants who occupy HOME-assisted rental housing units must be income recertified on an annual basis. The Section 8 definition of household income applies.

Underwriting Guidelines for Rental Projects The following underwriting guidelines must be followed for any rental developments. The numbers submitted should reflect the nature and true cost of the proposed activity. IHCDA will consider any underwriting outside of these guidelines if supporting documentation is provided. TOTAL OPERATING EXPENSES – All developments must be able to underwrite with a minimum operating expense of $2,500 per unit per year (net of taxes and reserves). MANAGEMENT FEE – The maximum management fee allowed is described in the table below based on the number units within the project. The percentage is based on the “effective gross income” (gross income for all units less vacancy rate).

Number of Units Maximum Management Fee Percentage

1 – 50 7%

51 - 100 6%

101 or more 5%

VACANCY RATE – All developments must be able to underwrite with a vacancy rate between six percent (6%) and eight percent (8%). RENTAL INCOME GROWTH – All developments must be able to underwrite with a rental income growth between zero percent (0%) and two percent (2%) per year. OPERATING RESERVES – All developments must be able to underwrite with operating reserves for four (4) to six (6) months (operating expenses plus debt service) or at $1,500 per unit based on whichever is greater. REPLACEMENT RESERVES – All developments are required to have replacement reserves and must be included in the operating budget, but is not included as part of the operating reserves. Contributions must be made to the reserve account starting at or before the conversion date of the construction loan to permanent loan and must be funded for the term of the loan. Replacement Reserve funds must only be used for Capital Improvements (substantial improvements to the real estate such as re-roofing, structural repairs, or major projects to replace or upgrade existing furnishings, but not including replacement of individual appliances or minor repairs) and must not be used for general maintenance expenses. Less restrictive provisions required by lenders must be approved by IHCDA. Replacement Reserves must escalate at a rate of 3% per year. IHCDA will at its discretion, adjust the Replacement Reserve to reflect reasonable and customary capital and replacement expenditures. The following minimum contributions must be used.

Development Type Minimum Contribution per unit per year

Rehabilitation* $350

New Construction $250


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* For Rehabilitation developments, the Capital Needs Assessment will be reviewed in determining whether sufficient reserves have been established. OPERATING EXPENSE GROWTH – All developments must be able to underwrite with operating expense growth between one percent (1%) and three percent (3%) per year. IHCDA requires operating expense growth to be at least one percent (1%) higher than rental income growth. STABILIZED DEBT COVERAGE RATIO – All developments must be able to underwrite with a stabilized debt coverage ratio with the following standards. Stabilization usually occurs in year 2, however the debt coverage ratio projection for a development should not go below 1.1 during the complete 15 year compliance period to be considered financially feasible. IHCDA does recognize that rural deals will typically have higher debt coverage at the beginning of the compliance period in order to remain feasible over the fifteen years. Documentation to support these higher debt coverage ratios must be provided. Developments without hard debt are allowed but will be subject to additional scrutiny from IHCDA. Developments submitted with no debt will not have a debt coverage ratio but will be required to have a cash flow without having an undue profit. This will be determined by a ratio of Effective Gross Income to Total Annual Expenses (including reserve for replacement). A ratio of 1.15 shall be the minimum required to be considered feasible by IHCDA in Years 1-15. Tax abatement may cause the debt coverage ratio to be higher than these guidelines.

Development Location Minimum Contribution per unit per year

Large and Small City 1.15 – 1.40

Rural 1.15 – 1.50

The following documentation is required for Stabilized Debt Coverage Ratio:

Documentation of estimated property taxes and insurance for the proposed Development (i.e. a statement of how the applicant determined the estimated taxes and insurance for the Development); AND

If the underwriting is outside these guidelines, the applicant must provide a written detailed explanation with third party documentation supporting the explanation (approval of underwriting from other financing institutions/funding sources will not constitute acceptable supporting documentation).


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H o m e b u y e r R e q u i r e m e n t s

The purpose of this activity is to provide funding to improve the quality of housing stock while making it affordable for homebuyers. Funding is available for the acquisition, rehabilitation and new construction of housing that will be sold to income-eligible homebuyers.

Eligible Beneficiaries Each household must have an annual income equal to or less than eighty percent (80%) of the area median family income (adjusted for household size) at the time the contract to purchase the home is signed. The Section 8 definition of household income applies. To be eligible for homebuyer activities, the prospective purchaser beneficiary must be low-income and must occupy the property as a principal residence upon purchase. The purchasing household must be low-income at either:

In the case of a contract to purchase existing housing, at the time of purchase; or

In the case of a contract to purchase housing to be constructed, at the time the contract is signed; or

In the case of a lease-purchase agreement (for either existing housing or housing to be constructed), at the time the lease-purchase agreement is signed.

A household owns a property if that household:

Has fee simple title to the property; or

Maintains a 99-year leasehold interest in the property; or

Owns a condominium; or

Owns or has a membership in a cooperative or mutual housing project that constitutes homeownership under state law; or

Maintains an equivalent form of ownership approved by HUD. Ownership does not include life estates and land contracts/contracts for deeds.

Recapture/Resale Requirements The recipient must implement resale requirements for every homebuyer property constructed, redeveloped, rehabilitated, or acquired, in whole or in part, with HOME funds in the form of a development subsidy. The development subsidy consists of the difference between the cost of producing the unit and the market value of the property. Contrarily, the recipient must implement recapture restrictions for any homebuyer property purchased, in whole or in part, by a homebuyer that received a direct subsidy from the Recipient in an amount greater than or equal to One Thousand and 00/100 Dollars ($1,000) from HOME funds. A direct or homebuyer subsidy consists of any financial assistance that reduces the purchase price from fair market value to an affordable price, or otherwise directly subsidizes the purchase (e.g., down-payment or closing cost assistance, subordinate financing). If the homebuyer no longer utilizes the property as its principal residence during the affordability period the amount to be recaptured is the shared net proceeds of a prorated amount of the homebuyer subsidy. The proration shall be based on the length of time the homebuyer has occupied the property as its principal residence in relation to the affordability period. If there is both a development subsidy and a homebuyer subsidy or just a homebuyer subsidy, a recapture provision must be implemented. In cases


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where a homebuyer subsidy was not provided and there is only a development subsidy, resale restrictions must be executed on the property. With respect to HOME-assisted rental units, the recipient must execute a lien and restrictive covenant agreement, and a loan agreement, promissory note, mortgage, security agreement and UCC’s, as directed by IHCDA, in order to preserve affordability and secure IHCDA’s investment in the assisted property. Recipient must use documents that are prepared by IHCDA. Homebuyer Provisions

Recipients are required to identify and qualify homebuyers prior to acquiring and beginning construction on the HOME-assisted units; however, HOME-assisted units are not considered completed until occupied by an income eligible homebuyer. Therefore, units that are not completed during the award timeframe may affect future funding decisions.

Recipients will be required to provide an “after rehab” or “construction value” appraisal; whichever is appropriate, from a licensed appraiser for all property assisted with the award with the first draw that includes hard costs. If the applicant is acquiring property an “as-is” appraisal is required with the first draw request for acquisition reimbursement. See IHCDA’s Compliance Manual for details.

Applicants also performing rehabilitation on the housing in this activity must purchase: o Homebuyer residential units, o Rental units that have been vacant for three (3) or more months, or o Occupied rental units only if the current tenant will become the eventual homebuyer.

See the IHCDA’s Compliance Manual for further guidance.

Subsidy analysis must be based on a borrower’s payment for a minimum of a 20-year mortgage.

Recipients are required to provide homeownership counseling to all program beneficiaries.

If the not-for-profit applicant anticipates selling the HOME-assisted unit to a buyer that will utilize an FHA or VA insured mortgage, they may be required to first be approved by HUD to be a secondary lender. Information on how to become a HUD-approved lender can be obtained at HUD’s website or by calling the HUD’s Atlanta Homeownership Center toll free at (888) 696-4687 ext. 2055.

According to 24 CFR 92.254(a)(2) in the case of acquisition of newly constructed housing or standard housing, the property must have a purchase price that does not exceed the FHA 203(b) mortgage limits. In the case of acquisition with rehabilitation, the property must have an estimated value after rehabilitation that does not exceed the FHA 203(b) mortgage limits. For a list of current mortgage limits, see the appropriate RED Memo on IHCDA’s website.

The HOME-assisted housing unit must be occupied as the homebuyer's principal residence throughout the affordability period. The length of the mandatory affordability period is found in the section labeled “All HOME-Eligible Activities.”

Homebuyer units that are multi-family (four (4) or less units) must meet all program requirements. The owner must be income qualified (income from the rental units must be included). The occupants of the rental units must also be income qualified and impose all rental requirements.


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Any HOME-assisted homeownership unit that has not been sold by the recipient to an eligible homebuyer within six (6) months of completion must be converted to a HOME-assisted rental unit.


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C o m p l e t e n e s s & T h r e s h o l d C r i t e r i a

Each proposed project must satisfy the Federal requirements of the HOME program and any additional requirements established by IHCDA. To be considered for funding, an applicant must meet all of the criteria listed below. Completeness

Timeliness – All documentation must be turned in by the application due date.

On or before the application deadline, the applicant must provide all documentation as instructed in this Application Process Handbook as well as required documentation listed in the HOME Application Form.

If IHCDA requests additional information from the applicant, all requests are due on or before the date provided by IHCDA staff.

Any forms that are late will be denied review and will be sent back to the applicant.

Responsiveness – All questions must be answered and all supporting documentation must be provided.

The applicant must provide all documentation as instructed in this Application Process Handbook as well as required documentation listed in the CDBG Application Forms.

The applicant must provide all documentation as requested (i.e. uploaded or hard copies, labeled correctly, etc.)

Required signatures must be originally signed.

Completeness Checklist Y or N

Is every question answered?

Are all required signature pages signed?

Was the Application Form uploaded to the FTP site by the due date?

Are all required Tab Attachments uploaded to the FTP site by the due date?

Was a hard copy of the Application Form with original signatures sent to IHCDA by the due date?


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Threshold Guidance & Checklist Items that MUST be submitted as part of Threshold Review are indicated in italics. After initial threshold review, IHCDA staff may contact the applicant for further clarification of an item. Failure to respond to the requested clarification items by the due date and in the manner requested will result in application denial.

TAB DESCRIPTION

INCLUDED AS ATTACHMENT?

Y or N or NA

Application Cover Page

A

The Applicant must maintain System for Award Management (“SAM”), formerly Central Contractor Registration (“CCR”). www.sam.gov

Provide proof of SAM registration and/or status.

If the applicant is a CHDO, they MUST complete the CHDO tab and the CHDO Board of Directors tab in the Application Forms.

B

If the owner is different from (A) or (B), enter the contact information for the owner of the project.

Provide a letter from the Owner authorizing the applicant to apply for funding for the Owner’s property.

Application Summary

C

Applicants that are not-for-profit corporations organized under section 501(c)3 or 501(c)4 of the Internal Revenue Code, but not also state-certified Community Housing Development Organizations (CHDOs), must include a copy of their IRS determination letter.

Provide a copy of the IRS determination letter.

D

If the proposed project previously received funding directly from HUD or Rural Development, the applicant must send a notification letter to the appropriate HUD or Rural Development office.

Provide copy of the letter along with proof of sending.

E

Not-for-Profit applicants, subrecipients, and administrators organized under the State of Indiana must provide proof of organization and that they are in good standing.

Submit a copy of the Certificate of Existence from the Indiana Secretary of State that is no more than six months old.

F

Environmental Review Record – Please refer to the Environmental Review Guide for specific details on completing the ERR.

Submit the completed ERR forms, the original publisher's affidavit, flood determinations and site specific photographs for each identified site.

Income Levels Rental housing developments must assist households at or below sixty


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percent (60%) of the Area Median Income for the County, as published by HUD and distributed by IHCDA. Additionally, these developments with five (5) or more HOME-assisted units must set-aside at least twenty percent (20%) of the units for area median income levels of fifty percent (50%) and below.

Homebuyer activities must assist households at or below eighty percent (80%) of the Area Median Income for that County.

Maximum Income Levels

Applicants may find the IHCDA 2013 Federal Program Income Limits as RED Notice RED-13-16 or here.

G

Affirmative Fair Housing Marketing Plan

In accordance with 24 CFR 200.620 and 24 CFR 92.351(a), the Recipient must adopt an Affirmative Fair Housing Marketing Plan for rental and homebuyer projects containing five (5) or more HOME-assisted housing units.

Provide form HUD-935.2A in Tab G. (Click on the form name to be directed to HUD’s Form portal).

Project Narrative

It is important that the project is well planned and that the proposed project will satisfy a housing need in your area. Address the following items when describing the project. You can also find this information on the application form by floating your cursor over the narrative questions.

1) Project Description: Describe the project concept, including the rationale for selecting the current project form, and details of the project including size, number of units, location, etc.

2) Amenities in and around the project: Describe the amenities that the project will provide to beneficiaries along with amenities within close proximity to the project area that beneficiaries will benefit from.

3) Area’s needs the project will meet: Describe the community need for the project along with the impact the project will have on the community as a whole.

4) Community support and/or opposition to the project: Describe the support and/or opposition the community has for the project. List community leadership (individuals, agencies, elected officials, organizations, etc.) that support and/or oppose the project. Also describe any public outreach that has taken place to ensure/gain community support for the project.

5) Constituency served by the project: Describe the project’s intended customers or beneficiaries and discuss the project’s impact on those individuals or families. Please explain why the proposed project is the best possible solution for the beneficiaries.

http://www.in.gov/myihcda/2421.htm

http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/forms/hud9a


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6) Partnerships created to enhance the project: Identify the partnerships, formal and informal, that were created as a result of the project concept and the role the partnerships have in the project?

7) Project quality: Describe the elements of the project (can include services provided, materials used, organizational/financial support, etc.) that will help produce a high quality project for both the beneficiaries and the community.

H

8) Target area: Describe the project location and why this area was selected. The target area is the geographic location in which a potential housing project may take place. Depending on how urban or rural the surroundings, it might be as small as a neighborhood or as large as a county. Describe how you determined this was the appropriate area for your project.

Attach a scaled map that includes: the project area boundaries and the specific site(s) with a map key labeling the site address(es). If the project is in multiple counties, please submit a labeled county map for each county that includes the specific site(s) with a map key labeling the site addresses. Attach in Tab H.

9) Effective use of resources: Describe the steps taken by your organization to ensure resources, both non-IHCDA and IHCDA funds, are being used effectively to positively impact beneficiaries and the community.

10) Unique features: Briefly describe the unique features of the project. Unique features should be a creative addition to the proposed OOR program. They should enhance the overall character of your project, improve the project beneficiaries’ and the community’s quality of life, health, and safety. Unique features can be included in the financial structure of the project, involve members of the community, include items specific to the target area/project location or could include special services offered to the population served.

More information and supporting documentation will be required later in the application.

Services: Briefly describe any services that will be provided to beneficiaries. More information and supporting documentation will be required later in the application.

Market Needs

I

HUD requires that IHCDA certify that there is adequate need for each project based on the neighborhood’s housing market. This applies to both homebuyer and rental projects including acquisition, rehabilitation, and/or new construction. In order to help make this determination please answer all of the questions in the Market tab in the 2013 HOME application.


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Attach any relevant support material such as planning documents & maps in Tab I.

Match

J

Leverage Spreadsheet

Submit a completed Leverage Spreadsheet with all required support documents.

J

Commitment Letters

Provide originally signed Letters of Commitment for any match/leverage or other sources contributing to the project.

Sources and Uses

List all sources of grants to the project that do not require repayment. Also, list the IHCDA award request amount made in this application.

List all sources of permanent financing for the project that remains beyond construction. Include the value of any new mortgages that are taken out at the end of construction by the developer/owner. Enter the name of the lender, original amount of the loan, the current interest rate, amortization period, loan term, payment amount and proposed lien position. If the IHCDA funding request includes permanent financing in the form of a loan, enter anticipated terms and information in this table.

K Attach letters of commitment from all other funders in Tab K.

K

List all sources of private or public cash donations to the project.

Attach letters of commitment in Tab K.

K

List all in-kind contributions to the development phase of the housing activity, including construction, materials, volunteer labor, waived fees, portion of sale price below appraised value, etc.

Attach all in-kind supporting documentation (such as but not limited to letters of commitment, appraisal, or purchase agreement) in TAB K.

Project Characteristics – See Page 36 of this document for more details.

Aging in Place An explanation of how this project will serve an Aging in Place population will

be explained by answered the questions in the Project Narrative section of

the application. The originally signed HOME application will serve as

certification that the development will comply with the accessibility or

adaptability requirements for new construction or rehab Aging in Place

projects.

For rehab projects with more than 26 units, a capital needs assessment must

be submitted in Tab L.


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Comprehensive Community Development: Narrative An explanation of how this project is part of a larger revitalization effort will be explained by answering the questions in the Project Narrative section of the application.

L

Comprehensive Community Development projects: Evidence of a Plan Submit ALL OF THE BELOW in Tab L as evidence that this project is part of a comprehensive revitalization or development plan:

Copy of the entire plan; A short narrative about the efforts that lead to the creation of the

plan and how the need for owner-occupied rehabilitation was identified as an area need to be included in the plan;

A bulleted list that includes page numbers of where to find: o References to the need for affordable owner-occupied

rehabilitation in the project target area o An evaluation of current area conditions o Public participation

L

Comprehensive Community Development projects: Target Area

Submit a scaled map that includes the project area boundaries and the specific OOR sites with a map key labeling the site addresses. Clearly label the boundaries and indicate the size of the target area. Attach in Tab L.

L

Comprehensive Community Development projects: Evidence of Adoption Submit a copy of the resolution by the Local Unit of Government adopting the plan in Tab L.

L

Comprehensive Community Development projects: Local Support

Submit a letter from the highest elected local official certifying that the project will assist in the revitalization of the specific neighborhood or area. Attach in Tab L.

L

Services:

For Homebuyer Projects:

One Form A: Homeowner Investment Plan Matrix listing all services for the entire proposed program (found at the end of this Application Package);

Form B: Homeowner Investment Plan Matrix for EACH service provider with original signatures (found at the end of this Application Package);

A brief narrative explaining how these services will enhance the targeted population for the proposed project.

For Rental Projects:

One Form A: Tenant Investment Plan Matrix listing all services for the entire proposed program (found at the end of this Application


32

Package); Form B: Tenant Investment Plan Matrix for EACH service provider

with original signatures (found at the end of this Application Package);


Development Features

M

Existing Structures

Submit all of the following for points in the selected categories in Tab M:

Photographs of the building to be reused; Documentation of whether or not the building is occupied; Narrative of how building will be reused; If the property is a historic resource, submit either a letter from the

Department of Natural Resources Division of Historic Preservation and Archaeology that specifically identifies the site as an historic resource OR a copy of the county interim report or some equivalent county historical society report identifying the property as either an historical resource or a contributing resource in an historic district.

M

Infill

Submit all of the following for points in the selected categories in Tab M:

Aerial photos of the proposed site(s);

Brief description of how the site will return vitality to the

neighborhood.

Readiness

N

Client Intake

Applicant, sub-recipient, or administrator has already begun client intake. Client intake must include income verification. Beneficiaries that have not been appropriately income-verified per the HUD Part 5 definition should not be included in the list. List needs to include client name and information pertinent to the target population being served.

Submit a copy of the Client Intake list in Tab N.

N

Predevelopment Activities

Site Control

Provide Purchase Option or Purchase Agreement that is no older than

6 months and that has an expiration date after the HOME application

due date. Feasibility or Market Study

Provide the study with applicable pages marked.


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Appraisal

Provide an Appraisal that is no older than 6 months. Preliminary or Final Architectural and/or Engineering Plans

Provide electronic copies of architectural and/or engineering plans. Zoning Approval

Provide a letter no older than 6 months from the local planning official

that certifies the current zoning allows for construction and operation

of the proposed development and any required variances that have

been approved. Formal Feasibility or Market Study

Submit a Market Study or Feasibility Study that is no older than 6

months and that was created and certified by a professional market

analyst. Title Search

Submit evidence of clear title with a title insurance commitment, title

search documentation or attorney's opinion letter. Other Submit appropriate documentation.

N

Contractor Participation

Provide the following to receive points:

Provide a copy of the state certification and A copy of the letter inviting the contractor to participate in the

project bidding.

Capacity

O

Training

Points will be awarded for a member of the applicant, sub-recipient or administrator staff who has participated in a housing or community development related training in the past 24 months. Attach copies of the training completion certificate(s) in Tab O.

O

Certification

Points will be awarded for a member of the applicant, sub-recipient or administrator staff who has completed the following certifications (see list on Page 23 of this document) within the past three years. Attach copies of the certification completion documentation in Tab O.

Financing

P Public Participation


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Points will be awarded to applicants whose proposed project has received a firm commitment of other public funds.

Submit a letter from the appropriate authorized official approving the funds. The letter must include (a) a description of the type of approved funding for the proposed project and (b) the amount of funding.

P

Leveraging of Other Funding Sources

Points will be awarded to applicants whose proposed project has received a firm commitment of Other Leveraged Funding Sources.

Submit a letter from the appropriate authorized official approving the funds. The letter must include (a) a description of the type of approved funding for the proposed project and (b) the amount of funding.

Unique Features & Partnerships

Q

Unique Features

Points will be awarded to projects proposing Unique Features. Features receiving points in other sections of this application will not be considered for Unique Feature points.

Submit a narrative summary of the proposed unique features in Tab Q.

R

Partnerships

Points will be awarded for partnerships with an Area Agency on Aging and/or for Energize Indiana.

Submit MOUs for each partnership in Tab R.

CHDO

S Submit a copy of the applicant’s current State CHDO Certification /Recertification letter.

HOMEBUYER ASSESSMENT

T

Homebuyer documentation:

A list of identified and the date of income verification;

Narrative description of the homebuyer counseling program;

Narrative description of foreclosure prevention efforts;

Utility allowance information (if applicable);

Tax allowance information (if applicable).


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S c o r i n g

If an application meets all applicable requirements, it will be evaluated and scored based on:

Scoring Category Points

Possible Project Characteristics 35 Development Features 28 Readiness 13 Capacity 30 Financing 10 Unique Features & Partnerships 10 Completeness Bonus 5 Total Possible Points 131

When there is a scoring criteria based on the county being served and there are multiple counties, the applicant should add up the scores from each county and average them, rounding to the nearest whole number. Project Characteristics Category Maximum Points Possible: 35 This scoring category describes the proposed project. There are 35 total possible points for this scoring category. The points can be achieved through the following sub-categories: Constituency Served, Targeted Population, Comprehensive Community Development, and Services.

1) Constituency Served Maximum Number of Points: 8 For rental projects only: If the development commits to servings beneficiaries in IHCDA-assisted units with maximum incomes lower than required by the HOME program and maintains housing costs at affordable rates, points will be awarded in accordance with the following chart. Percentages are of the area median income (AMI) for the county in which the development is to be located. Awarded recipients will be held to the unit commitment in their award agreement. Changes to the AMI levels will require prior IHCDA approval.

Constituency Served Points

20% of Population served at or below 30% AMI 8

For homebuyer projects only: Points will be awarded to applicants that have at least 20% of the potential homebuyers identified and income verified.

Homebuyers Identified Points

At least 20% of the potential homebuyers are identified and income verified. 8


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2) Targeted Populations Maximum Number of Points: 5 Points will be awarded to applicants that target populations with special housing needs in

accordance with the following charts.

Target Population: Aging in Place Points

At least 80% of Population served 55 and Older or 100% of Population served 62 and Older.

5

Aging in Place (AIP) refers to making our living environment safe and adaptable so that everyone

can remain independent and continue to thrive in their homes and community even as

circumstances change.

In order to receive points for AIP projects must satisfy the following criteria:

For New Construction:

100% of the units must be accessible or adaptable, as defined by the ADA and the

Indiana Accessibility Code, and for rental projects, elevators or lifts must be installed

for access to all units above the ground floor.

Include the following:

o The originally signed HOME application will serve as certification that the

development will comply with these requirements.

For Rehabilitations:

100% of the ground floor units must be accessible or adaptable, as defined by the

ADA and the Indiana Accessibility Code, and all units above the ground floor must be

adaptable as defined by the ADA and the Indiana Accessibility Code unless the

building(s) contained elevator(s)/Lift(s) prior to rehabilitation, in which case the

elevators/lifts will need to be maintained and 100% of the units above the ground

floor will need to be accessible and adaptable.

Include the following:

o The originally signed HOME application will serve as certification that the

development will comply with these requirements.

o For rehab projects with more than 26 units, a capital needs assessment must be

submitted in Tab L.

3) Comprehensive Community Development Maximum Number of Points: 10

Points will be awarded to applicants whose projects contribute to the revitalization of existing areas. Points will be awarded based on the chart below.

Comprehensive Community Development Points

An explanation of how this project is part of a larger revitalization effort.

1

Evidence that this project is part of a comprehensive revitalization or development plan.

5

The project is located in a targeted area. 1


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Adoption of the plan by a Local Unit of Government. 2 A letter from the highest elected local official certifying that the project will assist in the revitalization of the specific neighborhood or area.

1

Projects with a Comprehensive Community Development focus are a part of a broader, more comprehensive approach to area improvement. These projects have the capability of contributing to fundamental change to the character of a targeted area. Further explanation of the points categories are explained: In order to receive points under the Comprehensive Community Development scoring sub-category, the applicant must submit the following in Tab L:

An explanation of how this project is part of a larger revitalization effort should be explained in the Project Narrative section of the application. You should include information regarding target size, a plan, the efforts already completed or underway, local support for this and other projects in the revitalization efforts, funding commitments, what is the intended impact and how impact will be measured, etc.

Evidence that this project is part of a comprehensive revitalization or development plan. Ideally this will be a comprehensive or revitalization plan for the town/city where the project is located. The plan must be no older than five years and should include: (a) a target area, (b) detailed policy goals, which must include the rehabilitation of owner-occupied homes, (c) implementation measures along with specific, current, and ongoing time frames for the achievement of such policies and housing activities, (d) an evaluation of current area conditions.

o Submit the following as supporting documentation for the plan:: Copy of the entire plan; A short narrative about the efforts that lead to the creation of the plan

and how the need for owner-occupied rehabilitation was identified as an area need to be included in the plan;

A bulleted list that includes page numbers of where to find:

References to the need for affordable owner-occupied rehabilitation in the project target area

An evaluation of current area conditions

Public participation

The following will not be considered for points as eligible plans for this category: short-

term work plans, consolidated plans, municipal zoning plans, or land use plans, plans

that are older than five years old and plans that do not reflect the current target area

conditions.

Target Area - Submit a scaled map that includes the project area boundaries and the specific site(s) with a map key labeling the site address(es). Clearly label the boundaries and indicate the size of the target area. Attach in Tab L.

Evidence of Adoption - Submit a copy of the resolution by the Local Unit of government adopting the plan. Attach in Tab L.


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Local Support – Submit a letter from the highest elected local official certifying that the project will assist in the revitalization of the specific neighborhood or area. Attach in Tab L.

4) Services Maximum Number of Points: 12 Points will be awarded to applicants whose projects contribute to the overall quality of life for the beneficiaries of the proposed OOR project. Points will be awarded based on the chart below.

Level of Services Points

Possible Level 1 Services: Up to three services at one point each. 3

Level 2 Services: Up to three services at two points each. 6

Level 3 Services: Up to three services at four points each. 12

In order to receive points for this scoring category, the applicant must submit in Tab L: For Homebuyer Projects:

One Form A: One Homeowner Investment Plan Matrix listing all services for the entire proposed OOR project (found at the end of this Application Package);

Form B: Homeowner Investment Plan Matrix for each service provider with original signatures (found at the end of this Application Package);


For Rental Projects:

One Form A: One Tenant Investment Plan Matrix listing all services for the entire proposed project (found at the end of this Application Package);

Form B: Tenant Investment Plan Matrix for each service provider with original signatures (found at the end of this Application Package);


Development Features Category Maximum Points Possible: 28 This category describes the features of the overall proposed HOME project.

1) Existing Structures Maximum Number of Points: 7 Points will be award to developments that will utilize existing structures on at least 50% of the HOME assisted units. This may include properties in which an original substandard unit will be demolished and replaced with a comparable unit. Per the federal regulations, when replacing existing affordable housing, the number of replacement units must be one-for-one.

Existing Structure Points

Developing a vacant structure(s) for housing. 2

Acquiring and rehabbing existing housing stock. 2

Demolishing an existing substandard unit and replace it with a new unit. 1

Development contains at least one unit that is a historic resource to the existing 2


39

neighborhood.

In order to receive points, the applicant must submit in Tab M:

Photographs of the building to be reused;

Documentation of whether or not the building is occupied;

Narrative of how building will be reused;

Either a letter from the Department of Natural Resources Division of Historic

Preservation and Archaeology that specifically identifies the site as an historic resource,

or a copy of the county interim report or some equivalent county historical society

report identifying the property as either an historical resource or a contributing

resource in an historic district.

2) Infill Maximum Number of Points: 7 Points will be awarded to applications that meet IHCDA’s HOME criteria for Infill. For the HOME program, IHCDA defines infill housing as the process of vacant or underused parcels of land within existing areas that are already largely developed or previously developed. For purposes of this category, the following will not qualify as infill housing:

Existing agricultural land except within corporate limits.

The development will receive points for contributing to the following infill attributes:

Infill Attribute Points

The site must be surrounded on at least two sides with adjacent established development. Parks and green space area may qualify as established development, provided that they are part of a master plan or recorded instrument. IHCDA will look at the entire development site for phased developments.

2

The site must maximize the use of existing utilities and infrastructure. 2

At least one side of the development must be adjacent to occupied residential development, operating commercial development, active public space, or another active community activity.

2

The site demonstrates a return of cultural, social, recreational and entertainment opportunities, gathering places, and vitality to older centers and neighborhoods.

1

In order to receive points, the applicant must submit in Tab M:

Aerial photos of the proposed site(s);

Brief description of how the site will return vitality to the neighborhood.

For scattered site projects, 30% of the proposed sites must meet the infill attribute

scoring criteria in order to receive the corresponding points.

3) Design Features Maximum Number of Points: 3 Points will be awarded for each Design Feature chosen, for a maximum of three points in this category.


40

4) Universal Design Features Maximum Number of Points: 3 Points will be awarded for each Universal Design Feature chosen, for a maximum of three points in this category.

5) Energy Efficiency & Conservation Maximum Number of Points: 3 Points will be awarded for each Energy Efficiency and Conservation item chosen, for a maximum of three points in this category.

6) Green Building Maximum Number of Points: 5 Points will be awarded for EITHER up to three Green Building Techniques chosen. OR Five points will be awarded for committing the entire development newly constructed or rehabbed to NAHB, LEED, or Energy Star standards.

Readiness Category Maximum Points Possible: 13 This category describes the applicant’s ability to begin and timely execute an awarded project.

1) Client Intake Maximum Number of Points: 5 Points will be awarded to applicants that have already begun the client intake process, according to the chart below. If the applicant, sub-recipient, or administrator has already begun client intake, submit a copy of the client intake list in Tab N.

% of Assisted Units Points

25 - 50% of the units 3



2) Predevelopment Activities

Points will be awarded to applicants that have completed some predevelopment activities according to the chart below. Up to five activities are eligible, up to five points. Points will only be awarded if the required supporting documentation, italicized below the activity description, are included in Tab N.

Predevelopment Activity Completed Points

Site Control Provide Purchase Option or Purchase Agreement that is no older than 6 months and that has an expiration date after the HOME application due date.

1

Feasibility or Market Study Provide the study with applicable pages marked.

1

Appraisal Provide an Appraisal that is no older than 6 months.

1

Preliminary or Final Architectural and/or Engineering Plans Provide electronic copies of architectural and/or engineering plans.

1

Zoning Approval Provide a letter no older than 6 months from the local planning official that certifies the current zoning allows for construction and operation of the proposed

1


41

development and any required variances that have been approved.

Formal Feasibility or Market Study Submit a Market Study or Feasibility Study that is no older than 6 months and that was created and certified by a professional market analyst.

1

Title Search Submit evidence of clear title with a title insurance commitment, title search documentation or attorney's opinion letter.

1

Other 1

Other 1

Examples of “other” predevelopment activities that may be eligible for points in this category are as follows. Please provide the italicized documentation in Tab N to be eligible for points:

Water available to site o Provide a letter from the local utility company certifying that water is currently

available to the site.

Sewer available to site o Provide a letter from the local utility company certifying that water is currently

available to the site.

Permits in place. o Provide a letter from the local planning or building authority that all necessary

permits for rehabilitation or construction have been obtained.

Property survey completed. o Provide a copy of the survey.

For other predevelopment activities that may be eligible, please contact your Real Estate Production Analyst to discuss prior to submitting the application.

3) Contractor Participation Maximum Number of Points: 3

Points will be awarded to applicants who invite material participation of a state certified Minority Business Enterprise (MBE), Women Business Enterprise (WBE), Federal Disadvantaged Business Enterprise (DBE) Participation, Veteran-Owned Small Business (VOSB), and Service Disabled Veteran Owned Small Business (SDVOSB). Examples of material participation include property management, professional services, consultant, application preparer, administrator, etc.

In order to receive points, the applicant must submit in Tab N:

A copy of letter inviting the state certified contractor to participate in the bidding of the

project;

A copy of the applicable state certification.

Minority Business Enterprise and Women Business Enterprise, including DMBE (Disadvantaged Minority Business Enterprise), and (Disadvantaged Woman Business Enterprise) and DMWBE (Disadvantaged Minority Woman Business Enterprise), means as an individual, partnership, corporation, or joint venture of any kind that is owned and controlled by one or more persons who are: (a) United States Citizens and (b) Members of a racial minority group or female in gender as evidenced by certification from the Indiana Department of Administration Minority & Women’s Business Enterprise Division or the Indiana Minority Supplier Development Council.


42

DBEs are for-profit small business owned or controlled by socially and economically disadvantaged individuals own at least a 51% interest and also control management and daily business operations. The Indiana Department of Transportation (INDOT) is the sole certifying agency for the Indiana DBE Program. The Center for Veteran Enterprise maintains the Department of Veterans Affairs (VA) database of service-disabled Veteran owned small businesses (SDVOSB) and Veteran-owned small businesses (VOSB) called the Vendor Information Pages (VIP). The VIP database is accessed via www.VetBiz.gov. CVE performs the verification process for small businesses that self-represent themselves as Veteran owned and controlled called the VA VOSB Verification Program.

Eligible Certification Summary Table

Certification Certifying Agency Website

MBE Indiana Department of Administration http://www.in.gov/idoa/2352.htm

Indiana Minority Supplier

Development Council

http://imsdc.org

WBE Indiana Department of Administration http://www.in.gov/idoa/2352.htm

DBE Indiana Department of Transportation http://www.in.gov/indot/2576.htm

VOSB U.S. Department of Veterans Affairs http://www.va.gov/osdbu/

SDVOSB U.S. Department of Veterans Affairs http://www.va.gov/osdbu/

Capacity Category Maximum Points Possible: 30 This category evaluates the applicant’s ability to successfully carry out the proposed project based on trainings, certifications and/or experience in housing or community development.

1) Training Maximum Number of Points: 5 Points will be awarded for a member of the applicant, sub-recipient or administrator staff who has completed a housing or community development related training in the past 24 months. Two points will be awarded for the first training and one point per additional training, up to five points possible. Attach copies of the training completion certificate in Tab O.

Training Points

Housing or community development related training

2 for the first training, 1 point for each additional training up

to 5 points

2) Certification Maximum Number of Points: 10

Points will be awarded for a member of the applicant, sub-recipient or administrator staff who has completed the following certifications within the past five years. Five points awarded for the

http://www.vetbiz.gov/

http://imsdc.org/


43

Certified Aging-in-Place Specialist certification. Two and a half points will be awarded for all other certifications, up to ten points. Attach copies of the certification completion in Tab O.

Certification Points

Certification from one of the certifications listed below

5 points for the Certified Aging-in-Place Specialist certification,

2.5 points for all other certifications, up to 10 points

Certification Sponsoring Organization

Project Development Training Indiana Association for Community and

Economic Development (IACED)

Housing Development Finance Professional

National Development Council (NDC)

Community and Neighborhood Revitalization Certificate

NeighborWorks America

Bank of America Neighborhood Builder® Leadership Program

The Center for Leadership Innovation

Certified Aging-in-Place Specialist National Association of Home Builders

(NAHB)

CDBG Grant Administration Certification Office of Community and Rural Affairs,

State of Indiana

3) Experience Maximum Number of Points: 5

Points will be awarded for a member of the applicant, sub-recipient or administrator staff with successful experience in administering an IHCDA award in the past three years. In order to qualify for points, the awards must be closed out. Please list the award numbers in the application forms.

Experience Points

Applicant, sub-recipient or administrator staff member with experience administering at least two IHCDA HOME awards in the past five years.

OR Applicant, sub-recipient or administrator staff has 5 or more years of experience in the housing development industry.

2 for the first staff member, 1 point for each additional staff

member, up to 5 points

4) Previous IHCDA Award Performance Maximum Number of Points: 10

Points will be awarded to an applicant where the applicant, sub-recipient, AND administrator have not had any monitoring findings and who have expended award funds in a timely manner


44

for all IHCDA awards in the past three years. Timely expenditure of funds includes lack of award extensions.

Description of Previous Award Performance

Points

Most recent IHCDA OOR award had no findings and no concerns. Award must have closed within the last three (3) years.

10

Most recent IHCDA OOR award had no findings, but concerns were noted. Award must have closed within the last three (3) years.

8

Most recent IHCDA OOR award had only one finding. Award must have closed within the last three (3) years.;

OR No OOR experience, but previous IHCDA award (different activity) had no findings and no concerns. Award must have closed within the last three (3) years.

6

No OOR experience; previous IHCDA award (different activity) had no findings, but concerns were noted. Award must have closed within the last three (3) years.

4

No OOR experience; previous IHCDA award (different activity) had only one finding. Award must have closed within the last three (3) years.

2

Does not meet any category above. Examples:

More than one finding on previous award

No award closed within last three (3) years

No previous experience with IHCDA.

0

Financing Category Maximum Points Possible: 10

1) Public Participation Maximum Number of Points: 5


45

Points will be awarded to applicants whose proposed project has received a firm commitment of

other public funds. A “firm commitment” means that the funding does not require any further

approvals. “Public funds” include federal, state, or local government funds. This can include

funds awarded from other federal or state agencies, the Federal Home Loan Bank, or waivers

resulting in quantifiable cost savings that are not required by federal or state law.

Points will be awarded based on the Amount of Public Participation Funding/Total Project Costs:

% of Total Development Cost Point(s)

.50% to .99% 1

1.00% to 1.99% 2

2.00% to 2.99% 3

3.00% to 3.99% 3.5

4.00% to 4.99% 4

Greater than 5.00% 5

In order to qualify for points in this category the applicant must submit in Tab P a letter from the appropriate authorized official approving the funds. The letter must include (a) a description of the type of approved funding for the proposed project and (b) the amount of funding.

2) Leveraging of Other Sources Maximum Number of Points: 5

Points will be awarded to applicants whose proposed project has received a firm commitment to leverage other funding sources. A “firm commitment” means that the funding does not require any further approvals. “Other funding sources” include (but are not limited to) private funding, funds from a local community foundation, donations, etc.

Points will be awarded based on the amount of Other Funding Sources Leveraged/Total Project Costs:

% of Sources Point(s)

.50% to .99% 1

1.00% to 1.99% 2

2.00% to 2.99% 3

3.00% to 3.99% 3.5

4.00% to 4.99% 4

Greater than 5.00% 5

In order to qualify for points in this category the applicant must submit in Tab P a letter from the appropriate authorized official approving the funds. The letter must include (a) a description of the type of approved funding for the proposed project and (b) the amount of funding.

Unique Features & Partnerships Category Maximum Points Possible: 10

1) Unique Features Maximum Number of Points: 5


46

Points will be awarded to applicants that offer unique features that contribute to each of the beneficiary units of the proposed project. Unique features should be a creative addition to the proposed program. They should enhance the overall character of the project, improve the homeowners’ and the community’s quality of life, health, and/or safety. Unique features can be included in the financial structure of the project, involve members of the community, include items specific to the target area/project location or could include special services offered to the population served. Points are awarded relative to other projects being scored during each application cycle and are awarded in IHCDA’s sole and absolute discretion. The following chart sets forth the anticipated percentage of applications that will receive points using a maximum of 5 points.

% of Applications

5% 8% 12% 16% 18% 16% 12% 8% 5%

Points 5 4.5 4 3.5 3 2.5 2 1.5 1

In order to receive points in this category, the applicant must submit in Tab Q a narrative summary in of the proposed unique features. Features receiving points in other sections of this application will not be considered for Unique Feature points.

2) Partnerships Maximum Number of Points: 5

Points will be awarded for the following partnerships: Area Agency on Aging (AAA) AAA’s deliver services to older adults and people with disabilities of any age and their caregivers. They provide Information about resources and service providers, assess needs for service, make referrals to case managers, link to services, monitor consumer satisfaction and adjust services to meet changing needs. Learn more on their association website at http://www.iaaaa.org/ The MOU between the CDBG OOR Applicant and/or Administrator will create a partnership where the AAA will perform the assessments for aging needs for the Aging in Place projects. The AAA will also assist in prioritizing the needed improvements for the Aging in Place projects. An example MOU can be found in Form C at the end of this document. A copy of the MOU must be submitted in Tab R to meet threshold for this category.

Energize Indiana Energizing Indiana is a united effort by the Indiana Office of Utility Consumer Counselor (OUCC), participating utilities, and consumer organizations to offer comprehensive energy efficiency programs that bring savings to communities across the state. With programs for homes, schools, businesses and commercial facilities, Energizing Indiana provides the education and tools you need to improve efficiency and conserve energy. Learn more about this effort on their website at www.energizingindiana.com The MOU between the HOME Applicant and/or Administrator will create a partnership where there is a referral and/or agreement to take advantage of the several types of programs the

http://www.iaaaa.org/

http://www.energizingindiana.com/


47

Energize Indiana initiative has to offer. An example MOU can be found in Form D at the end of this document. A copy of the MOU must be submitted in Tab R to meet threshold for this category.

Partnership Description Points

An MOU between the applicant and/or administrator and the local Area Agency on Aging (AAA).

2.5

An MOU between the applicant and/or administrator and Energize Indiana.

2.5

Bonus Category Maximum Points Possible: 5 The applicant will receive 5 bonus points for answering all questions and turning in all required threshold documentation. Threshold documentation includes all scoring support documentation.


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G l o s s a r y o f T e r m s

Below are definitions for commonly used terminology found throughout the IHCDA CDBG OOR application policy and forms and applicable to the IHCDA CDBG OOR program. Administrator: A procured entity that will assist carrying out the CDBG OOR program. Area Agency on Aging: Area Agencies on Aging (AAAs) deliver services to older adults and people with disabilities of any age and their caregivers. They provide Information about resources and service providers, assess needs for service, make referrals to case managers, link to services, monitor consumer satisfaction and adjust services to meet changing needs. Learn more on their association website at www.iaaa.org Aging in Place: Making a living environment safe and adaptable so that everyone can remain independent and continue to thrive in their homes and community even as circumstances change. Beneficiary: The household or unit that received homeowner repair work as a result of the CDBG OOR grant. Children: Children are defined as those persons ages 18 years of age or younger. The child must reside in the home that will benefit from the OOR program. Comprehensive Community Development: Every community strives to be a place where people choose

to live, work, and play. Comprehensive development means that a community's potential lies in the

identification and creation of a shared vision, planned by local leadership, and carried out by an array of

partners. When successful, it yields results beyond what can be achieved by individual organizations or

disparate programs because of the unique synergy they generate. A thriving community is a community

with job opportunities, strong schools, safe neighborhoods, a full range of housing choices, and a vibrant

culture. Comprehensive development marshals resources and deploys coordinated strategies in a

concentrated area to create opportunities for others in the community to take prudent risks and reap

the rewards. The demolition of blighted structures, the rehabilitation of long-vacant housing and the

creation of new community amenities and retail opportunities serve as a tipping point for future

development through market forces.

Disabled: The Fair Housing Act defines disability as a person who has/is:

A physical or mental impairment which substantially limits one or more of such

person’s major life activities; or

A record of having such an impairment; or

Is regarded as having such an impairment, but such term does not include current,

illegal use of or addiction to a controlled substance (as defined in section 102 of the

Controlled Substances Act).


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Elderly: A person 55 years of age or older. This target population category also includes families with a person living in their home that is 55 years of age or older and modifications to the home are needed so this person may age in place in the home benefitting from the OOR program with the family. Energize Indiana: Energizing Indiana is a united effort by the Indiana Office of Utility Consumer Counselor (OUCC), participating utilities, and consumer organizations to offer comprehensive energy efficiency programs that bring savings to communities across the state. With programs for homes, schools, businesses and commercial facilities, Energizing Indiana provides the education and tools you need to improve efficiency and conserve energy. Learn more about this effort on their website at www.energizingindiana.com Entitlement Community: The CDBG entitlement program allocates annual grants to larger cities and urban counties to develop viable communities by providing decent housing, a suitable living environment, and opportunities to expand economic opportunities, principally for low- and moderate-income persons. IHCDA: Indiana Housing and Community Development Authority

Income Limits: Maximum incomes as published by HUD for projects giving the maximum Income Limits

per unit for beneficiary (30%, 40%, 50%, 60% and 80% of median) units.

Median Income: A determination made through statistical methods establishing a middle point for

determining Income Limits. Median is the amount that divides the distribution into two equal groups,

one group having income above the median and one group having income below the median.

MOU: A Memorandum of Understanding (MOU) is a document describing a bilateral or multilateral agreement between two or more parties. Narrative: A written description by the applicant that describes the application question and generally supports the need of the project. Project: The HOME activity proposed in the application.

http://en.wikipedia.org/wiki/Document

http://en.wikipedia.org/wiki/Bilateralism

http://en.wikipedia.org/wiki/Multilateral


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L i s t o f a p p e n d i c e s t o t h e I H C D A 2 0 1 3 C D B G O O R A p p l i c a t i o n :

Form A: Homeowner Investment Plan Matrix (for Homebuyer projects) Form B: Homeowner Investment Plan Service Agreement (for Homebuyer projects) Form A: Tenant Investment Plan Matrix (for Rental projects) (IHCDA note: will be added later) Form B: Tenant Investment Plan Service Agreement (for Rental projects) (IHCDA note: will be added later) Form C: Memorandum of Understanding for Area Agency on Aging Form D: Memorandum of Understanding for Energize Indiana


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Form A: Homeowner Investment Plan Matrix

Form Homebuyer Projects Only

Service Provider/Agent/Organization

CDBG Applicant Name:

Subrecipient and/or Administrator Name:

Service Provider Name:

Street Address:

City: County:

Place a “X” next to the targeted population

Households with persons with physical and/or development disabilities

Households persons with mental impairments

Households with children Households with elderly

Other:

LEVEL 1 SERVICES = 1 Point per Service (up to 3 services for points = total 3 points possible)

Homeowner Investment Plan Services & Description

Service Brief Description of Service Location of Service Points

☐ Food Pantry Referral

☐ Clothing Pantry Referral

☐ 2-1-1/ Information & Referral

☐ Smoking Cessation

☐ Coupons to Local Public/ Private Facilities

LEVEL 2 SERVICES = 2 Points per Service

(up to 3 services for points = total 6 points possible)



☐ Computer Training Classes

☐ Nutrition Classes/ Food Preparation Classes

☐ Exercise Classes

☐ Resume Building

☐ GED/ Adult Education

☐ Tax Preparation Assistance

☐ Blood Pressure Screening

☐ Other:


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☐ Other:

☐ Other:

LEVEL 3 SERVICES = 3 Points per Service

(up to 4 services for points = 12 points possible)



☐ Homeowner Repair Instruction

☐ Financial Literacy Instruction

☐ Legal Planning Assistance

☐ Emergency Response System

☐ Medication Delivery

☐ Home Healthcare

☐ Employment Services/ Vocational Rehab

☐ Meals on Wheels

☐ Assisted Living

☐ Adult Daycare/ Eldercare

☐ Substance Abuse Treatment

☐ Family Caregiver Support Program

☐ HUD Certified Counseling (Please specify):

☐ Other:

☐ Other:

☐ Other:

☐ Other:


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Form B: Homeowner Investment Plan Service Agreement

For Homebuyer Projects Only

HOMEOWNER INVESTMENT PLAN SERVICE AGREEMENT This agreement between (Applicant and Administrator (if applicable)) , , and (Service Provider/Agent/Organization) , is to confirm the activities and/or incentives offered to beneficiaries of (HOME project name) . The Applicant/Administrator agrees that in partnering with the Service Provider/Agent/Organization, programs should be offered that are tailored to meet the needs of the beneficiary homeowners in an effort to encourage homeowners to invest in themselves, their home, and the overall well-being of the neighborhood and/or community. It is agreed by all signing parties that the Homeowner Investment Plan adds no extra cost to the homeowner or the overall HOME project budget. It is understood that some classes/activities offered might require a maintenance fee and it is up to the sole discretion of the beneficiary homeowner to engage in that activity, service and/or incentive. That fee must be minimal. The Homeowner Investment Plan Services may target beneficiary homeowners of the HOME project but must be optional and the repairs made to the beneficiary home/unit must not be contingent upon participating in the activities, services and/or incentives offered. The Applicant and/or Administrator also agree to fill out the Form A: Homeowner Investment Plan Matrix, and attach the form to this agreement, listing the services that will be offered to the beneficiary homeowners, a brief description of the service, where the service is being offered and the level of the service. This agreement and the services offered and listed on the Form A: Homeowner Investment Plan Matrix shall remain in effect for the life of the IHCDA HOME award. The Applicant/Administrator will be responsible for maintaining all services for the life of the IHCDA HOME (even if the Applicant/Administrator is required to find a different provider who will provide the same or comparable services to benefit the residents). In the event that a different provider is needed, the Applicant/Administrator will request approval for the change via a modification request to IHCDA.

Applicant Authorized Signatory__________________________________________ Printed Name Date Administrator Agent_________________________________________________ Printed Name Date Service Provider/Agent/Organization___________________________________ Printed Name Date


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Form C: Memorandum of Understanding for Area Agency on Aging

WHEREAS (Applicant) , was awarded or anticipates receiving an award of HOME funds from the Indiana Housing and Community Development Authority (IHCDA) for (number of units) , known as (HOME project name) in (city or county) , Indiana; and WHEREAS (name of local Area Agency on Aging) , provides services to older adults and people with disabilities of any age and their caregivers, particularly in the form of providing information about resources and service providers, assess needs for service, make referrals to case managers, link to services, monitor consumer satisfaction and adjust services to meet changing needs within (list County’s the local AAA service) ;

THEREFORE, (Applicant) , and (name of local Area Agency on Aging) , agree to the following partnership to allow (name of local Area Agency on Aging) , to perform the assessments for aging and disability needs for the (HOME project name) , and (name of local Area Agency on Aging) , also agrees to assist in prioritizing the needed design features for the Aging in Place rehabilitation or new construction project.

(Applicant) , shall:

Agree that in partnering with (name of local Area Agency on Aging) , programs should be offered that are tailored to meet the needs of the beneficiary homeowners in an effort to encourage homeowners to invest in themselves, their home, and the overall well-being of the neighborhood and/or community.

Agree that providing this assessment adds no extra cost to the homeowner.

Identify and coordinate project beneficiary homeowners to the (name of local Area Agency on Aging)

(Name of Local Area Agency on Aging) , shall:

Agree that in partnering with (Administrator) , programs should be offered that are tailored to meet the needs of the beneficiary homeowners in an effort to encourage homeowners to invest in themselves, their home, and the overall well-being of the neighborhood and/or community.

Agree that providing this assessment adds no extra cost to the homeowner.

Perform home assessments for project beneficiary homeowners as identified by (Applicant) .

IN WITNESS WHEREOF, the parties have executed, or caused this agreement to be executed by their duly authorized representatives, as of the date below written. Applicant Authorized Signatory__________________________________________ Printed Name Date Administrator Agent_________________________________________________ Printed Name Date Area Agency on Agency ___________________________________ Printed Name Date


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Form D: Memorandum of Understanding for Energizing Indiana

WHEREAS (Applicant) , was awarded or anticipates receiving an award of HOME funds from the Indiana Housing and Community Development Authority (IHCDA) for (number of units) , known as (HOME project name) in (city or county) , Indiana; and WHEREAS Energizing Indiana, provides comprehensive energy efficiency programs for homeowners to improve efficiency and conserve energy within (HOME project City or County(ies)) ;

THEREFORE, (Applicant) , and Energizing Indiana, agree to the following partnership to allow Energizing Indiana, to provide direct access to technical experts and money-saving actions for the beneficiary homeowners in the (HOME project name) .

(Applicant) , shall:

Agree that in partnering with Energizing Indiana, programs should be offered that are tailored to meet the needs of the beneficiary homeowners in an effort to encourage homeowners to invest in themselves, their home, and the overall well-being of the neighborhood and/or community.

Identify project beneficiary homeowners to Energizing Indiana Energizing Indiana shall:

Agree that in partnering with (Administrator) , programs should be offered that are tailored to meet the needs of the beneficiary homeowners in an effort to encourage homeowners to invest in themselves, their home, and the overall well-being of the neighborhood and/or community.

IN WITNESS WHEREOF, the parties have executed, or caused this agreement to be executed by their duly authorized representatives, as of the date below written. Applicant Authorized Signatory__________________________________________ Printed Name Date Administrator Agent_________________________________________________ Printed Name Date Energizing Indiana Authorized Signatory ___________________________________ Printed Name Date

1 IHCDA HOME PROGRAM JUNE 2013

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Transcript of 1 IHCDA HOME PROGRAM JUNE 2013